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Question - The Lurking Turtle Restaurant is considering whether to purchase a new commercial dishwasher. The machine costs $21,000 and is expected to produce the following incremental operating cash flows over the next 10 years:
Years 1-3 $4,000
Years 4-10$2,000
Required - What is the payback period of the dishwasher?
a. 8 years
b. 7 years
c. 7.5 years
d. 8.5 years
e. None of the other answers is correct
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